Central Asia’s biggest state to maintain healthy GDP growth with big contribution from SMEs

Central Asia’s biggest and most resourceful state Kazakhstan is expected to achieve a 5% growth GDP by the year-end, according to Minister of National Economy Alibek Kuantyrov. SME sector has played a key role in this.

Kuantyrov in a recent meeting with the Kazakh President noted that small and medium-sized businesses (SME) contribution to the GDP has reached an all-time high of 36.4%. Foreign direct investment reached $13.3 billion in the year’s first half, with a notable drop in annual inflation to 10.8% from this February’s 21.3%.

Emphasizing the pivotal role of SMEs, Kuantyrov revealed that these enterprises collectively generated over 28 trillion tenge ($60 billion) in production. This sector also played a vital role in employment, providing jobs for 4.3 million individuals. In 2023, 9,000 projects were granted subsidies with a combined loan of 669 billion tenge ($1.4 billion).


Kuantyrov outlined a strategic shift in entrepreneurship policy, including establishing a registry of mandatory requirements and automating the risk management system. The aim is to halve business inspections, streamlining processes to foster a more conducive business environment.

In briefing with the President, Kuantyrov provided updates on the ongoing development of new Budget and Tax Codes, investment policies, and public-private partnerships. Noteworthy plans include attracting 267 billion tenge ($574 million), rehabilitating 5,800 kilometers of networks, increasing salaries for housing and communal services workers by 50%, and reducing network wear and tear by 3.2% within the Tariff in the Exchange for Investment program.

Kuantyrov underscored the substantial increase in funding from the state’s budget since the initiation of the Auyl – El besigi (Village is the heart of the nation) program, reporting a sevenfold rise. The 2023 plan aims to implement 1,800 projects across 771 villages.

According to the IMF estimates, Kazakhstan is expected to witness a notable decline in inflation in the coming years.